Independent will match 50% of each employee’s contribution to his or her 401(k) account for the plan year that begins on July 1, 2011, up to an annual limit of $250. This means that an employee who contributes $500 or more for the year ($10 a week) will actually be investing at least $750 to his or her 401(k) because of the $250 matching contribution from the company.
The company had made similar matches in previous years, but the practice was suspended in 2008 when the national economy stumbled. This year, however, the company’s 401(k) committee recommended restoring the match, and the board of directors unanimously agreed.
“Our outside directors --- Darcy Olsen, Richard Bricker and Pete Eyerly --- felt Independent’s people deserved this recognition of their efforts,” INI board chair Joe Smyth said. “Our people sacrificed and worked harder and smarter to help the company to get through the worst national economy since the Great Depression, so we’re pleased to finally be able to restore at least a modest 401(k) match.”
“We hope the company match will spark participation in the plan,” said the 401(k) committee members --- Corporate President Ed Dulin, Corporate Treasurer Toni Ayers and Corporate Secretary Wanda Ford-Waring. “A 401(k) plan is one of the most powerful tools employees can use to invest now for their retirement and long-term security.”
The first benefit is that your contributions to a 401(k) plan are not taxed as current income. They come right off the top of your salary before taxes are withheld. This reduces your taxable income, allowing you to pay less in taxes each year. You will eventually pay taxes when you begin to withdraw money from the plan, but you may be in a lower tax bracket at that time.
Furthermore, money held in a 401(k) plan grows tax deferred. The investment earnings on plan assets are not taxed as long as they remain inside the plan. In the meantime, tax-deferred growth gives you the opportunity to build a substantial 401(k) balance over the long term, depending on investment performance.
Your contributions can be a percentage of your gross pay or a flat dollar amount per pay period. Each employee can defer up to $16,500 annually tax deferred; if you are age 50 and older before the close of a plan year, you are eligible to contribute up to $22,000 to your 401(k) account, all tax deferred.
Every employee age 21 or over, who has been with the company one year with at least 1,000 hours of service, is eligible to join Independent’s 401(k) Plan.
You can contact inipayroll@newszap.com if you wish to join the 401(k) Plan and begin receiving the company match. If you would like to increase your current contribution, changes can be made through your Ceridian Self Service by selecting Benefits>401(k) Elections.
To learn more about Independent’s 401(k) plan, review the summary plan document in the company handbook on the toolbox @ http://initoolbox.newszap.com/handbook.htm#VIII._Benefit_Summary_Plans_
